How much are you willing to spend on a new car? Are luxury cars worth the expense since cars depreciate In value?
New, like 2022 model year? Or 'new to me' ? Two very different things. I prefer to buy cars that have already lost all the value they're going to lose, and either stay flat or appreciate in value.
The newest thing I own is a 2010, and that is a rare special edition with only 7200 miles on it. Its value has only gone up in the time I've owned it.
My winter car is a 2007 Cadillac crossover that I have less than $5k in, and that includes new tires, wheel bearings, driveshaft, the entire brake system, and the cost of flushing and changing all the fluids and filters when I got it. It drives like new, and I don't have to sweat it when winter snow and slush eventually rot it to the point of unuseable.
My summer daily drivers are the big block 69 Camaro and the 78 Corvette. Both fun and interesting, and I could sell either one, at pretty much any time, for more than I paid for them.
The brand new models just have a ton of bells and whistles that I'm not interested in, and there are few offerings that I really find visually appealing. On top of that, you have to take into account the massive depreciation you mentioned. Just not my thing.
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I see no sense spending 'luxury' car prices when you've lost roughly 30% as soon as you drive if off the dealers lot.
I's rather buy something cheap like a Dacia Sandero for £9,845 ($13,544) and keep the rest of my money in the savings account.
I spent over $60,000 on my car but at least it had a warranty. If you get a car that has a limited production and don't abuse it then it will retain it's value.
2018 Dodge Hellcat Redeye
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I wouldn't spend more than 30-60k on a car and im really only tryna spend that ob the tahoe, bmw and stinger
the car i’ll be chauffered around in My personal space and alone time car The “sedan” i’ll drive the future kids around in
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I'd only spend on cars the least possible £££ I can get away with.
In Anna Karenina Tolstoy described those peasants who started to make big money, but unlike aristocracy they never received the education that comes with wealth. The higher portion of incomes one spends on a car the more they resemble those peasants. I guess you can grasp the class differences between people who fill their homes with art, books, and artisan objects and just experience the world in anyway they can, eat fine food, drink fine wines, sleep in silk, go to music concerts, theatres, and mix it all up with a vibrant social life and people who buy the fastest cars, the loudest speakers and largest screens they can afford. If I made shit loads of money and I could afford to have a nice car without compromising on other stuff, I'd buy something like a db5, wich isn't a really good example for your question, cus old cars prices rather fluctuate than drop, but as I said usually there are far better things that money can be spent on than cars, so in my humble and honest opinion they do not worth their prices, unless the buyer is a 19th century russian peasant. -
Certain cars actually go up in value even modern cars such as the 2005 Ford GT, even if you put miles on it... it stays around the same price or even rises.
Some Ferrari go up in price, kind of the reason people don't drive them often or daily, only a few people that collect Ferraris actually daily drive them...( David Lee drives his)
One of the most expensive cars in the world was bought for $5,000 back in the 60s, and is now worth around $75 Million.
1963 Ferrari 250 GTO But if i would buy car currently, i would buy a 2006 Ford GT GTX1, The performance is amazing and its just a beautiful performance car, i would take it in blue with white decals.
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The big problem is the vast majority are depreciating assets. You spend £90k on a car, drive it off the forecourt and you have lots £20k.
it is a case of not paying book price but getting maximum discount.
For example, I have a BMW M4 and paid cash for it new, however I also get just over 25% discount on it. This really helps.
my Golf R, was £39k but only paid £29k 4.5 years ago.
it’s worth £22k if I sold it now.
£7k drop over 4 years is not bad.
i do not tend to loose too much on cars, however it is stupid really lol and I know it is.
i do however love good cars, driveability and performance. -
I’m happy around about the $50,000 mark just a nice new comfortable reliable car.. not a status symbol car 😊 that’s more a guys thing.
although my weakness may be a vintage statesman… completely impractical but I just love vintage and recycling 🤷♀️ -
Luxury cars don't depreciate that much slower but the original value is a higher starting point. The downside is they are more expensive to repair and dont always perform better than cheaper models on power or fuel economy.
Cars are more than just a mode of transport though. They are an indicator or economic status. People judge you on your car. So, if you care what other people think of you, a sexy new car from a luxury brand will turn heads. Whereas if you go and buy even the latest model Hyundai, nobody will care.
Having said all of that, it is said one should limit their spending on a car to 20% of your yearly salary. So if you earn $100,000 a year, spend $20,000 on a car. This will obviously be a second hand car. Yes, it may be possible to buy a new car for that money but it will be a cheap brand.
How much would I spend? I've spent a lot on cars in the past and it hasn't helped me. These days I just look for reliable second hand cars. No more than $30,000. -
My latest acquisition was slightly used. It depreciated after my brother bought it brand new from the Porsche dealership. Then, I nagged him to sell it to me at a "sisterly price" with 12-month, zero-interest financing. <3 I love the car and I love my brother for finally agreeing to my terms. :)
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The 're-sale' of well-built & maintained luxury & sports cars follows a hyperbolic depreciation / re-appreciation curve.
I'm presently restoring an '87 C4 Corvette coupe.
Florida deems this vehicle, HALF my age as an 'antique'. I guess that makes me... at TWICE its age,
a 'junior fossil' ~ An old retail furniture sales maxim is:
"Quality is REMEMBERED long-after the 'price' has been forgotten!"
Ever watch the PBS 'Antiques Roadshow'? -
I'll go up to around $15K to $20K. Cars just depreciate too fast. I'd rather get a two or three year old low mileage car. As it'll still hold up longer than I'll keep it without need for major repairs. It'll mostly still be under factory warranty. I won't take as much of a hit on depreciation. Really, it's not that different from a new car.
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Not into luxury cars, it's not because i can't afford but luxury cars are unpractical. I had my fair share with care racing and luxurious cars so it's kind of out of my system. I have a Skoda Octavia 2020 year model, manuel and it costed me about 20000 USD. Our economy is good, we can afford a car that cost about 80k, we don't have that kind of need. We spend money on luxury trips and vacations instead to relax and spoile our sleves
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I would never* buy a new car, the „instant“ depreciation one day later would really bother me. Consequently, I would never buy a new luxury car, the depreciation on these in absolute numbers is insane. I know, because I drive used luxury vehicles with sticker prices between 75k € and 120k €. Only I buy them at ages four to eight years old, saving ~60% to ~75% of their sticker price. That I can justify.
(* some unrealistically large rebate deal notwithstanding) -
I like my 2013 Nissan Versa. It has more room in it so I fit well. Lots of trunk space and good gas mileage too. I like it better than many vehicles that cost twice the price. It still works great and looks good too. I'll keep it as long as it continues to work well. I may get a Honda Trail or Monkey eventually just for a fun toy, but I doubt I'd get a new car anytime soon.
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A new car: Zero
I see no point in putting money into a vehicle that I DON'T use most of the time, and at the same time to enslave myself to some bank.
That's like putting a ball-and-chain on your ankle yourself.
A used one? Only cash, or if I could pay it down within a year.
Presently I'm perfectly supplied with a scooter bike ''only''.
I'm a free man. -
I'd rather buy nearly new. Cars plummeted in price the second you drive off the sales forecourt.
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Uh no.
If I was gonna buy anything I’d get a good used pickup truck or buy an old classic car and rebuild it.
luxury cars are just a massive waste of money to me and very impractical. -
Luxury cars are a big pile of crap. Never buy one if you depend on having a car. Even brands that are considered reliable aren't as reliable as non luxury vehicles. They are for people that don't really need a car or have other cars they depend on... It's a luxury.
You are better off renting one if you're just looking to use it for trips. -
Right now? Nothing, I don't need a car and I certainly don't need the expenses owning one, so buying a car would never be worth it, I am waiting for those robotaxi services to appear. They can handle the little time I need a car.
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I'll echo the voices that are saying the better deal, if you're looking for a luxury car, is to get a used one that's a few years old. I myself got a five-year-old Acura that had been a lease return in perfect condition for 20k.
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I wouldn't go over $30,000. Luxury cars are not worth it too me and its not just the value decrease as much as the liability of one bad accident and that's the end and your stuck with a very expensive paper weight.
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Buy a used one that retains its value if you’re going to. That way you can resell it in a couple of years and only have spent the amount it depreciated.
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I have only driven Mercedes since I bought my first one in 2004. I don't think of it as a luxury car but as an investment, for these reasons 1) it never has problems 2) when some dipshit in a Ford rear-ends you, you get a shit load of money for it.
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